MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. September 23, 2015 (REPORT 38) EAST FLUID MILK AND CREAM REVIEW FLUID CREAM AND CONDENSED SKIM PRICES IN TANKLOT QUANTITIES: SPOT PRICES OF CLASS II CREAM, DOLLARS PER LB. BUTTERFAT: F.O.B. producing plants: Northeast - 3.4808-3.6654 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .80-.83 Northeast - Class III - spot prices - .93-.96 SPOT SHIPMENTS OF GRADE A MILK INTO OR OUT OF FLORIDA AND OTHER SOUTHEASTERN STATES THIS WEEK LAST WEEK LAST YEAR IN OUT IN OUT IN OUT FLORIDA 120 0 120 0 92 0 SOUTHEAST STATES 0 0 0 0 0 0 In the Northeast, manufacturing milk supplies are light, while recovering from previous weeks' lows. Some manufacturing plants, particularly yogurt, are seeing increased seasonal demand for fluid supplies. In the Mid- Atlantic, milk production is declining, as hot-dry conditions takes a toll on cow comfort. Balancing plants continue to report drops in milk receipts but are able to cover existing contract orders. Milk production in the Southeast is lower. Manufacturing supplies are being held at minimums to ensure bottling plants needs are met. In Florida, milk production is steady to lower in some areas. Import milk shipments are unchanged from last week. Fluid sales are steady. According to the DMN National Retail Report-Dairy, for September 18-24, the U.S. weighted average advertised price for a gallon of milk was $2.69, a decrease of 24 cents from a year ago, but an increase of 24 cents from last week. Cream multiples range 1.32 to 1.39. Supplies are more available this week, as standardization sends more cream to manufacturing. Additional volumes are being made available due to declining ice cream demand. Cream cheese is stronger this week, as some plants initiate non-stop production schedules that run into the holidays. Wednesday's CME Group cash trading saw Grade AA butter close at $3.0250, up $0.4000 from a week ago. CME butter prices most recently reached this level in September 2014. Condensed skim supplies are adequate, with limited surplus volumes after commitments are filled. There are no shortages or customer delays being reported. Demand is steady and improving with reports of buyers searching for extra loads. Manufacturers are drying condensed skim heavily in some channels. MILK PRODUCTION: According to NASS, milk production in the 23 major states during August 2015 totaled 16.3 billion pounds, up 0.8% from one year ago. Eastern states' milk production are as follows: August 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 195 + 1.6 New York 1,207 + 2.5 Pennsylvania 893 + 0.3 Vermont 224 - 1.8 Virginia 145 - 1.4 1300C Daniel.Johnson@ams.usda.gov 608.557.7006 USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: http://www.ams.usda.gov/market-news/dairy Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da- home